Yahoo changes could make Tumblr less independent

Yahoo changes could make Tumblr less independent

In the social media world, new parent companies release statements whenever acquisitions take place, declaring that nothing will change. But previous incidences show that it hasn’t often been the case.

Although Tumblr has been part of the Yahoo network for two years, it has largely remained true to its users. But, there are rumors floating that there may be some staff shuffling between Tumblr and Yahoo, which could result in few changes for Tumblr service as well.

As per Business Insider reports, Yahoo has been planning a big reorganization that will bring Tumblr more close to the parent company, and it will no longer be allowed to be run as a largely independent business unit.

Apparently, it is doubtful that Tumblr will be able to meet a $100 million revenue goal, given to the team by Yahoo CEO Marissa Mayer this year.

According to the Business Insider sources, there have been changes taking place, as a result of which Yahoo will be exerting tighter control over Tumblr’s monetization strategies. There are chances that the network may also be handed to Simon Khalaf, former CEO of Flurry.

The news came on the same day when Tumblr brought a change on its dashboard. The users quickly blamed Yahoo for the perceived interference with the site. Since the acquisition, Tumblr has been largely independent, but now it seems that change is on the way.

Tumblr has already introduced ads and sponsored posts. Since October 2014, it has also offered video ads. But it’s quite noticeable that Tumblr users are not too happy about the changes made to the site layout to accommodate these ads.

The story of Tumblr at Yahoo echoes a known pattern in the tech acquisitions. In tech acquisitions, acquired companies are able to operate somewhat independently only for a time, as eventually they are brought in line with the core brand.

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